One more stock that's worth keeping on your breakout trading radar is Inovio Pharmaceuticals (INO), which is engaged in the discovery, development and delivery of vaccines, called DNA vaccines, focused on cancers and infectious diseases. This stock has been hit hard by the sellers in 2011, with shares off by over 60%.
If you look at the chart for Inovio Pharmaceuticals, you'll notice that this stock has been trading range bound for the past month between 45 cents on the upside and 35 cents on the downside. Now the stock has started to flirt with a major breakout since shares are testing the upper-end of that range, and it has started to break out above some near-term overhead resistance at $0.403 a share. This test of the upper-end of the range and the breakout are coming on monster volume. At last check, volume has registered over 804,000 shares, which is well above its three-month average action of 334,786 shares.
Traders should now watch for a sustained move and close above 40 cents and then 45 cents on high volume. Volume is going to easily register high today, so just look for a close near or above 45 cents to signal that this stock wants to trend significantly higher. If we get that close soon, then look for INO to make a run at its 50-day moving average of 52 cents. Any high-volume move over 52 cents should then set this stock up to re-test its next significant overhead resistance levels of 61 cents to 71 cents a share.You could be a buyer of INO off any weakness and simply place a mental stop just below some near-term support at 37 cents to 35 cents a share. If you buy this stock off weakness, then I would simply add to any long positions once INO takes out 45 cents on a closing basis with heavy volume. To see more breakout candidates like, check out the Breakout Stocks of the Week portfolio on Stockpickr. -- Written by Roberto Pedone in Winderemere, Fla.
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